U
User 1234
Member
Hi
Would be appreciated if anyone could help me understand the reserving concepts on the with-profits.
Chapter 21 says that " we wish to control the way that our surplus emerges over time, in order to distribute profits over the policy term in the way that policyholders expect"
My question is that:
whether the surplus in the above "surplus emerges" is the surplus before the reserves calculation or after the reserves calculation? I assume the reserves calculation is the gross premium valuation method which does take into account of the future bonuses distribution.
What's the relationship between the surplus emerges and the future bonuses distribution here?
Many thanks in advance!
Would be appreciated if anyone could help me understand the reserving concepts on the with-profits.
Chapter 21 says that " we wish to control the way that our surplus emerges over time, in order to distribute profits over the policy term in the way that policyholders expect"
My question is that:
whether the surplus in the above "surplus emerges" is the surplus before the reserves calculation or after the reserves calculation? I assume the reserves calculation is the gross premium valuation method which does take into account of the future bonuses distribution.
What's the relationship between the surplus emerges and the future bonuses distribution here?
Many thanks in advance!